Private Eye: Bausch & Lomb Gets Bought

Eye-care giant Bausch & Lomb has agreed to be acquired by affiliates of the private-equity shop Warburg Pincus in a deal valued at $3.67 billion, WSJ.com reports.

The company will likely welcome the seclusion that comes with leaving the public-equity market. The maker of contact lenses and associated products felt an unwelcome glare last year, as public health officials and media outlets around the world scrutinized ReNu with MoistureLoc, a contact-lens solution that was connected to an outbreak of serious fungal infections of the eye.

The months-long investigation of the solution played out over continents, with initial reports coming out of Asia, then spreading to the United States. Ultimately, the company determined that polymers in the solution could create a film on the contact lens, and that film could protect the fungus from the disinfecting solution.

The company’s stock cratered as market-share fell and liability lawsuits mounted. The stock started coming back earlier this year on rumors of private-equity interest. Today’s deal, which must be approved by shareholders, allows the company to seek a better offer from other potential buyers. Warburg Pincus will buy outstanding shares in the company for $65; the stock closed at $61.50 yesterday, but was trading at about $67 before the market opened this morning.